Despite Media Fascination with Quotes: Governor’s Reforms are Working; Unemployment Lower Again in Latest Figures 

AUGUSTA – Governor Paul R. LePage hailed the release of Maine’s May unemployment rateundefined6.8 percentundefinedas a sign of an improving economy, but he cautioned that the state still faces many economic challenges.

“Today’s report that Maine’s unemployment rate is below 7 percent for the second consecutive month is a positive sign that our economy is slowly recovering,” said Governor LePage. “We must continue to make the tough choices on taxes and right-sizing government that will further improve our business climate and kick our economy into high gear.”

Maine’s unemployment rate has fallen 0.5 percent in three months, from its 2013 peak at 7.3 percent. May’s unemployment rate is the lowest since 2008. Economists caution that, although the overall recent trend is down, the rate still may fluctuate in coming months.

May’s estimate of 600,400 nonfarm payroll jobs was up 2,400 from the revised April estimate. Growth has been primarily in the hospitality, professional services, health care and education sectors. Other sectors generally have stabilized since the downturn.

As the number of private sector jobs have slowly increased, these gains have been offset by losses in the number of government jobs. Government accounted for 16.6 percent of nonagricultural jobs in May, the lowest share since 2001.

Maine has fundamental, structural challenges that developed over decades. Maine’s lack of population growth, based on our age and demographics precludes the state from growing as fast as the nation for more than short periods.

“Making the state competitive in terms of taxation and the environment in which to grow a business is the formula that will create jobs and provide the opportunity that encourages young people to stay and others move here,” emphasized the Governor. “We need new businesses and a growing population to turn around these demographic trends that drag down our economy.”